South Africa’s FSCA Grants VALR Licenses to Offer Crypto and Traditional Derivatives

South Africa's Financial Sector Conduct Authority (FSCA) has approved two new licenses for local crypto exchange VALR, authorizing it to offer both crypto and traditional derivatives.

The company received an Over-The-Counter Derivatives Provider (ODP) license and an additional Financial Services Provider (FSP) license, allowing it to expand its product lineup across digital and traditional financial markets.

According to the firm, the ODP license enables it to provide "Contracts for Difference and other derivatives with crypto assets and traditional assets as underlying instruments." The FSP license broadens its scope to include traditional products such as deposits, shares, bonds, and other securities.

VALR said the approvals make it "one of the first entities in South Africa" permitted to offer such crypto-based derivatives.

The new authorizations follow VALR's earlier regulatory milestones. In April 2024, the company became among the first crypto asset service providers in the country to secure both Category I and Category II licenses from the FSCA.

These developments come as South Africa continues to refine its regulatory framework for digital assets and over-the-counter derivatives. Regulators are preparing new rules aimed at reducing systemic risk and tightening oversight of non-bank market participants.

The FSCA has indicated plans to implement capital and central clearing requirements within the next three years, with some OTC products potentially subject to central counterparty clearing. Industry consultations on the proposed measures are expected ahead of rollout.

Authorities say the updated framework is designed to support financial inclusion and innovation while aligning South Africa's regulatory standards with global best practices.